The June, 2015 issue of Direct Tax Amicus features an article on, International Taxation and Revenue Rule. In this article the author states that the concept of revenue rule in the nascent stage of international taxation contributed to the development of source and resident based taxation but certain recent developments may render such concept redundant in the future.
The Circular and Notification section covers the circular from Central Board of Direct Taxes (CBDT) on clarification on applicability of rollback provisions of Advance Pricing Agreement (APA) and also the notification on amendment of Tax Treaty between India and Denmark, entered into in 1989.
Ratio Decidendi section of this issue includes ITAT decision involving foreign tax credit where in it was held that the taxpayer would be entitled to tax credit to the extent of tax that would be payable in India even if tax it is not actually paid. This issue also covers another decision holding that providing extended credit period to AE cannot be treated as separate international transaction. This section also covers Supreme Court ruling that "Vend fee" payable to State Government for granting a privilege, would be allowable as a deduction in the year which payment has made. CBDT’s letter containing draft rules for applying range concept in determining ALP, Dutch Supreme Court ruling applying Base Erosion Rule to deny interest deduction and the new ‘Cayman Tax’ introduced by Belgium to target low-tax wealth structures are some of the interesting news covered under New Nuggets section of this issue.